Disability Tax Credit

What is the Disability Tax Credit?

The Disability Tax Credit is a valuable benefit available to those suffering with disabilities, as well as their supporting family members. The main aim of this tax credit is to assist in offsetting some of the costs associated with the impairment individuals may face.

Steps to Apply for the Disability Tax Credit

To determine your eligibility for the Disability Tax Credit, you need to follow the following steps:

  1. Application: Begin by applying for the disability tax credit, the application form is available online or via paper form. Applicants must complete Part A of the application form while part B of the form is filled out by a medical practitioner.
  2. Medical Certification: The next step involves having Part B of the application form filled out by a qualified medical practitioner. This medical professional must certify the effects of the impairment, which could include severe and prolonged impairments in one of the following categories or significant limitations in two or more of them:
  • Walking
  • Dressing
  • Feeding
  • Eliminating
  • Hearing
  • Speaking
  • Mental functions
  • Vision
  • Life-sustaining therapy
  1. Submission Timing: You can apply for the credit at any point during the year. However, it’s important to note that if you choose to apply for the tax credit along with your annual tax return, it may result in a delay in your tax assessment.

Review and Eligibility Determination

Once you’ve submitted the Disability Tax Credit form, the review process can take up to 8 weeks or longer if there is missing information in your application. The Canada Revenue Agency (CRA) will inform you of your eligibility status via a mailed letter, and the reasons for it, if you are determined ineligible. Importantly, you do not need to reapply for the disability tax credit every year unless specifically requested to do so by the CRA.

Additional Programs for Eligible Individuals

Individuals who qualify for the Disability Tax Credit may also be eligible for other programs, including:

  • Registered Disability Savings Plan (RDSP)
  • Education funding for people with disabilities
  • Child disability benefit (CDB)
  • Federal excise gasoline tax refund
  • Canada pension plan disability benefits
  • Canada pension plan children’s benefits

Disability benefits for veterans

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